Coventry City shareholders last night praised chairman Mike McGinnity for slashing the club?s #60million debt by over half.

But McGinnity - who replaced Bryan Richardson after a boardroom coup in January - warned the club?s annual general meeting that fans should not expect a similar dent in the Sky Blues? debts next season.

The accounts show the club?s net debt fell from #59.7m in May 2001 to #27.8m in May 2002, and McGinnity says he has since reduced it to around #23million.

He blamed his predecessor for the club?s cash crisis, reporting that the annual wage bill when he took over was #15.8million compared to a First Division average of less than #5million.

He said the collapse of ITV Digital in March had cost the club #5million and that the wage bill would be #6million next season even if no more players are sold.

He said the club?s players are close to agreeing a 12-per-cent pay deferral, adding: ?If that is the case then we should all go out and congratulate the players on showing a united front both on and off the field and a willingness to help this club succeed.?

But he stressed: ?We are not complacent. We need to improve. The savings we have made cannot be sustained in the forthcoming months. We must continue to make savings.?

Coventry North West MP Geoffrey Robinson, who now controls 62-per-cent of the club?s shares, was re-elected to the board along with McGinnity and deputy chairman John Reason.

Robinson this week doubled his share in the club when his company Craigavon Ltd paid #1 for the 31-per-cent stake controlled by former chairman Richardson. The deal saw Richardson drop his #350,000 claim for unfair dismissal, and in turn the club dropped its counter-claim over alleged financial irregularities and Robinson dropped a legal action against Richardson over a previous #1.2m share deal.

McGinnity said he couldn?t answer questions about the deal struck with Richardson because of a confidentiality agreement.